CONFIDENTIAL
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Mr. Cheung recalled that there would be a review of constitutional developments in Hong Kong in 1987. This
uld have to consider, among other things, whether direct ections to the Legislative Council should be introduced. Discussion in Hong Kong was beginning to focus on the desirability of directly elected representatives. The issue was clearly at the forefront of the Chinese Government's concerns. The Governor had made clear to them that HMG were committed to considering this question in the context of the review and could not prejudge how public opinion would view it. Another, though less controversial, matter under consideration was whether the Governor should step down as President of the Legislative Council. The Governor commented that there was likely to be a Green Paper on constitutional development early in 1987 and a White Paper at the end of the year. There was also likely to be an interim report in 1987 from the Basic Law Drafting Committee. The matters raised by Mr. Cheung had to be seen in the context of progress with drafting the Basic Law.
Miss Tam reported that the pace of drafting had quickened. In general, there was no difficulty in setting down what had been specifically agreed in the Joint Declaration. But problems were being experienced in grey areas where the Joint Declaration made no specific provision. A particularly difficult issue was the For relationship of the Basic Law to Chinese law. instance, who would interpret the Basic Law, the Hong Kong courts or Chinese courts? The Prime Minister said that she shared Miss Tam's concern. We must do everything possible to ensure that commitments made in the Joint Declaration and in the negotiations leading up to it were fully observed.
Miss Dunn said that if the drafting of the Basic Law departed from what had been agreed in the Joint Declaration there would be consequences for confidence in Hong Kong. Because there were differing opinions in Hong Kong itself, it was important that HMG should do everything possible to influence the drafting through informal contacts with the Chinese Government. The detailed papers on Hong Kong that the Foreign Secretary had handed to the Chinese Foreign Minister in May had been very helpful in this respect. Prime Minister suggested that it might be helpful to hand over further papers on points which continued to give concern during the Foreign Secretary's forthcoming visit to China with The Queen. The Governor could then follow them up subsequently with the Chinese.
The
Mr. Cheung referred to the importance of a smooth transition in 1997. One possibility being considered by the Executive Council was that of withdrawing the Governor from the political arena and appointing a Chief Executive who would have an overtly political role. There was provision in the Joint Declaration for the appointment of a Chief Executive in 1997. If one were appointed a few years earlier it might be possible to secure the Chinese Government's agreement to his remaining in office for a period after 1997. The Prime Minister commented that this required careful handling. If the Chinese Government were
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